Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Signature Bank as such a stock due to the following factors:
- SBNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.3 million.
- SBNY has traded 123,425 shares today.
- SBNY is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SBNY with the Ticky from Trade-Ideas. See the FREE profile for SBNY NOW at Trade-Ideas
More details on SBNY:
Signature Bank provides various commercial banking products and services. SBNY has a PE ratio of 20.8. Currently there are 13 analysts that rate Signature Bank a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Signature Bank has been 219,000 shares per day over the past 30 days. Signature has a market cap of $4.2 billion and is part of the financial sector and banking industry. Shares are up 24.6% year to date as of the close of trading on Friday.
rates Signature Bank as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.0%. Since the same quarter one year prior, revenues rose by 10.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SIGNATURE BANK/NY has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SIGNATURE BANK/NY increased its bottom line by earning $3.91 versus $3.37 in the prior year. This year, the market expects an improvement in earnings ($4.56 versus $3.91).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 18.4% when compared to the same quarter one year prior, going from $45.28 million to $53.60 million.
- The gross profit margin for SIGNATURE BANK/NY is currently very high, coming in at 81.31%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.27% significantly outperformed against the industry average.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 46.54% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Signature Bank Ratings Report.